Better Patient Outcomes
and Value Through
Supply Chain
Partnerships'
October 30, 2014
www.capdm.ca
CAPDM’s Vision
Ensuring safe, secure and timely
access to high quality healthcare
products for all Canadians
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Oct. 2014
About the Canadian Association for Pharmacy
Distribution Management
 The Canadian Association for Pharmacy Distribution Management
(CAPDM), founded in 1964, is a leading health care industry
association
 Represents every participant in the world’s most advanced
pharmaceutical supply chain
 14 wholesalers & self-distributors that operate over 30 distribution
centres and employ over 5,000 Canadians
 CAPDM is a reliable, objective, and trusted advisor to federal and
provincial governments and regulatory agencies.
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Oct. 2014
About the Canadian Association for Pharmacy
Distribution Management
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Oct. 2014
We ensure that patients have timely access to vital
medications in a safe, secure, and efficient manner
 CAPDM distributors visit almost
every pharmacy in Canada every
day, ensuring patients have timely
access to vital medicines
 Next-day delivery, up to 5 days a week
to almost all pharmacies
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What Our ‘Invisible Network’
Makes Possible
 In most cases, a one-day wait for a
rural patient needing an out-of-stock
drug
 A short-term buffer against drug
shortages
 Drug recalls being quickly executed
 Same-day & 6 days a week service in
urban areas
 Confidence in the integrity of all
drugs, even for cold-chain products
 Carrying 30K SKUs of prescription,
OTC medicines, and other pharmacy
products (including narcotics and slowmoving drugs)
 A $1.4 B system of extended credit
that bankrolls the pharmacy industry
Oct. 2014
 Opportunities for the government to
leverage during pandemics or for
vaccine distribution
Pharmaceutical Distributors of CAPDM
Added Value - Today
Government – Industry Partnerships
 Distribution of Public Health Seasonal Flu Vaccine
 Mitigation of Drug Shortage Impact
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Oct. 2014
Governments & pharmacies face challenges with
flu vaccine distribution
Government Challenges
 Pharmacy is a growing patient
destination for flu vaccinations
 Bolus of inventory being pushed to
stores
 Potential cold chain integrity issues if
pharmacies pick up vaccines from public
health units
 Potential waste if large inventories at
pharmacies sit unused, expire, or are
destroyed by natural disasters
 Inability to redistribute store-level
inventories to where they are needed
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Oct. 2014
Pharmacy Challenges
 Cumbersome ordering
processes, infrequent deliveries,
and/or lack of supply
predictability encourage large
store-level inventories
 Available refrigerator space may
not be able to accommodate
large bolus inventories
The capabilities of pharmaceutical distributors
could improve flu vaccine distribution efficiencies
 The core competencies of pharmaceutical distributors could be
leveraged to address challenges in servicing the growing demand
for seasonal flu vaccines by retail pharmacies:
 Cold chain capabilities ensure optimum storage and transportation
conditions all the way to the pharmacy
 Extensive distribution networks that visit every pharmacy regularly
 Inventory systems and manual tracking capabilities can be used to
determine flu vaccine inventory at the pharmacy level (in combination
with Ministry of Health billing data)
 GMP-compliant storage conditions allow flexibility for flu vaccine
inventories to be redeployed
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Oct. 2014
Some provinces have already engaged CAPDM and
its members for flu vaccine distribution
BC: Piloted
wholesale model to
pharmacies in 2013
AB: Wholesale
model already
underway
PE: Wholesale model
already underway
NS: Used
wholesalers for quick
in-and-out vaccine
distribution in 2013
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Oct. 2014
Early Lessons Learned from PE and AB
 Wholesalers have played an instrumental role in stopping hoarding,
preserving equitable allocation of vaccine inventories
 Daily/weekly reporting gives governments better visibility to how
much inventory is within the wholesale network and pharmacy
 Wholesale supply chain flexible enough to quickly direct inventories
to outbreak areas
 Pharmacies able to achieve just-in-time delivery of flu vaccines to
meet patient demand
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Oct. 2014
Pharmaceutical Distributors Can Help to Mitigate
Impact of Drug Shortages
 Working with Governments & Manufacturers
 Initiate Product Flow Controls
 Ensure Balanced Disbursement of Product
 Hold reserves for emergency use
While not involved in the root causes of a drug shortage. The
Pharmaceutical Distributors can mitigate Drug Shortage impact by
ensuring an equitable access to existing product.
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Oct. 2014
Public flu vaccines are just the tip of the iceberg for
how governments could leverage wholesalers
 Distribution of all public vaccines
 Servicing physician offices via their closest pharmacy
 Pandemic antivirals and personal protective equipment
 Other mass distribution needs (e.g., potassium iodide
pills)
 Critical medicine stockpiling
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Oct. 2014
Questions?
David Johnston
President
Canadian Association for Pharmacy Distribution
Management
david@capdm.ca
(905) 265-1501
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Oct. 2014